Subprime lending

(redirected from Subprime mortages)

Subprime lending

Lending to individuals who have a bad credit history or relatively low income. A higher interest rate is charged for such loans because risk to the lender is higher. Excessive subprime lending is often pointed to as one of the major causes of the financial crisis of 2008-2009.
References in periodicals archive ?
Al Jazeera's Rosiland Jordan, reporting from Washington, said the congressional commission is investigating whether Greenspan used his ability to issue regulations to try to clamp down on the issuance of subprime mortages.